North Carolina General Statutes 93A-42. Timeshare estates deemed real estate; timeshare uses
(a) A timeshare estate is deemed to be an interest in real estate and shall be governed by the law of this State relating to real estate.
(b) An owner of a timeshare located in the State may, in accordance with N.C. Gen. Stat. § 47-18, register the timeshare instrument by which the owner acquired the interest and upon such registration shall be entitled to the protection provided by Chapter 47 of the N.C. Gen. Stat. for the recordation of other real property instruments. A timeshare instrument transferring or encumbering a timeshare estate shall not be rejected for recordation because of the nature or duration of that estate, provided all other requirements necessary to make an instrument recordable are complied with. An instrument concerning a timeshare use shall not be recorded in the office of the register of deeds in any county in this State.
(c) Unless the timeshare instrument provides otherwise, the developer shall close on the sale of a timeshare estate and record or cause to be recorded a timeshare instrument for timeshare estates located in this State no later than 180 days following the execution of the contract of sale by the purchaser, provided that all payments made by the purchaser have been placed by the developer with an independent escrow agent in accordance with N.C. Gen. Stat. § 93A-45
(d) Repealed by Session Laws 2021-163, s. 1(c), effective October 6, 2021.
(e) In no event shall the developer be required to close and record a timeshare instrument if the purchaser is in default of the purchaser’s obligations under the contract of sale.
(f) Recordation under the provisions of this section of the timeshare instrument shall constitute delivery of that instrument from the developer to the purchaser.
(g) A timeshare use is not an interest in real property and shall be governed by the laws of this State relating to personal property. For each transfer of the legal title to a timeshare use by a developer, the developer shall deliver an instrument evidencing such transfer to the purchaser at closing. Unless the timeshare instrument provides otherwise, the developer shall close on the sale of a timeshare use no later than 180 days following the execution of the contract of sale by the purchaser, provided that all payments made by the purchaser shall be placed by the developer with an independent escrow agent in accordance with N.C. Gen. Stat. § 93A-45 In no event shall the developer be required to close on the sale of a timeshare use if the purchaser is in default of the purchaser’s obligations under the contract of sale.
(h) A developer may not sell or close on the sale of any timeshare that would cause the total number of timeshares available for use in the timeshare program to exceed the one-to-one use night to use right ratio. ?(1983, c. 814, s. 1; 1985, c. 578, ss. 2, 3; 1989, c. 302; 2001-487, s. 23(i); 2011-217, s. 20; 2017-25, s. 1(k); 2021-163, s. 1(c); 2021-192, s. 5(a).)
Terms Used In North Carolina General Statutes 93A-42
- Contract: A legal written agreement that becomes binding when signed.
- Developer: Any person or entity which (i) creates a timeshare, timeshare project, or timeshare program, (ii) purchases a timeshare for purpose of resale, or (iii) is engaged in the business of selling timeshares it owns or controls and shall include any person or entity who controls, is controlled by, or is in common control with the developer which is engaged in creating or selling timeshares for the developer. See North Carolina General Statutes 93A-41
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- following: when used by way of reference to any section of a statute, shall be construed to mean the section next preceding or next following that in which such reference is made; unless when some other section is expressly designated in such reference. See North Carolina General Statutes 12-3
- Independent escrow agent: A licensed attorney located in this State, or a federally insured depository institution or licensed title insurance underwriter or agency, lawfully doing business in this State, which agrees to make its records of the account available for inspection by the Commission's representative. See North Carolina General Statutes 93A-41
- One-to-one use night to use right ratio: The ratio of the number of owners eligible to use the timeshare units on a given night to the number of timeshare units available for use within the timeshare program on that night, such that the total number of owners eligible to use the timeshare units during a given calendar year never exceeds the total number of timeshare units available for use in the timeshare program during that year. See North Carolina General Statutes 93A-41
- Owner: Any person, other than a developer, who has acquired a timeshare. See North Carolina General Statutes 93A-41
- property: shall include all property, both real and personal. See North Carolina General Statutes 12-3
- Purchaser: Any person, other than a developer, who is advertised or solicited to acquire a timeshare, offered a timeshare, or enters into a timeshare instrument to acquire a timeshare. See North Carolina General Statutes 93A-41
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall be construed to include the said district and territories and all dependencies. See North Carolina General Statutes 12-3
- Timeshare: A timeshare estate or timeshare use. See North Carolina General Statutes 93A-41
- Timeshare estate: The right to occupy a timeshare unit coupled with ownership of any of the following real property interests:
- Timeshare instrument: An instrument transferring a timeshare or any interest, legal or beneficial, in a timeshare to a purchaser, including a contract, installment contract, lease, deed, or other instrument. See North Carolina General Statutes 93A-41
- Timeshare program: Any arrangement, plan, program, scheme, or similar device, other than an exchange program, whether by membership, agreement, tenancy in common, sale, lease, deed, rental agreement, license, or right-to-use agreement, or by any other means whereby an owner receives the right to use timeshare units for a period of time less than a full year during any given year, but not necessarily for consecutive years. See North Carolina General Statutes 93A-41
- Timeshare use: The right to occupy a timeshare unit that is not coupled with ownership of a real property interest. See North Carolina General Statutes 93A-41